Frequently Asked Questions
What is an operational referendum?
An operational referendum allows voters to approve additional local funding for ongoing school operations such as staffing, programs, and student services. Since 1993, Wisconsin law has required voter approval for districts to exceed state-imposed revenue limits. Currently, 87% of Wisconsin districts have relied on operational referendums to sustain quality education.
What will be on the ballot?
The question will read:
Shall the Waterloo School District, Jefferson, Dodge, and Dane Counties, Wisconsin be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $590,000 beginning with the 2026-2027 school year, for recurring purposes consisting of sustaining educational programming and operating expenses?
How much funding is the District asking for?
The referendum question will ask voters to approve $590,000 of funding every year on an ongoing basis.
When will the referendum be on the ballot?
The referendum will appear on the April 7, 2026, spring election ballot.
Why is the Waterloo School District asking for an operational referendum now?
On June 30, 2026, the Waterloo School District’s current operating referendum will expire. This referendum has been an important source of funding that supports the day-to-day operations of our schools and helps maintain the quality of education our community values. Because this funding is ending, voters will be asked on April 7th, 2026 to consider a renewal of the $590,000 operating referendum.
What happens if the referendum is approved?
If approved, the Waterloo School District would receive $590,000 annually to maintain current operations from the previous referendum.
What happens if the referendum is not approved?
If the referendum does not pass, the District will need to make additional reductions to programs, services, and staffing beyond those already planned in a budget that assumed voter approval.
Does this increase apply to all property owners equally?
The impact is based on property value, so higher-valued properties would see a higher dollar impact than lower-valued properties.
Why can’t the District fund this through the regular budget?
State law limits how much revenue school districts can collect, even when costs increase. The Waterloo School District has already reduced spending, but those options are no longer enough to cover ongoing costs.
How long would the referendum last?
A recurring referendum does not have an automatic end date. Once approved, the additional funding authority becomes part of the District’s ongoing budget and continues each year unless voters decide to change it. However, the school board is not required to levy the full approved amount each year. The referendum sets the maximum the district is allowed to collect, and the board may choose to levy less based on the district’s financial needs.
Is this a one-time question or something voters will see again?
This referendum is a one-time ballot question. If approved, it provides ongoing funding and does not automatically return to the ballot. Voters would only see it again if the District sought to change the amount or if a future board placed a new question before voters.
When would the funding take effect if approved?
If approved, funding would begin in the 2026-2027 school year.
Will renters be impacted by this referendum?
Renters do not pay property taxes directly, but landlords may factor property taxes into rent over time.
Why doesn’t the state cover these costs?
State funding has not kept pace with rising costs, including staff compensation, utilities, transportation, and student support needs. Referendums are the primary way districts can address this gap.
Can the money be used for buildings or construction?
No. Operational referendum funds cannot be used for building projects or facility construction. They are used for day-to-day school operations and services.
How will this referendum impact students directly?
The referendum is intended to help maintain programs and services from the original referendum. Cuts will need to be made in order to balance the budget for future years.
Did school districts raise property taxes because they chose to spend more than inflation?
No, school districts can only raise revenue within state-imposed revenue limits. Spending more than those limits requires voter approval through an operating referendum, which we are considering. The state authorized a per-pupil revenue limit increase that was less than inflation but did not provide the state aid necessary to fund it, thereby shifting costs to property taxpayers.
What is the difference between levy and tax rate?
Two important terms often cause confusion:
- Tax Levy: The total amount Waterloo public and private schools collect from property taxes.
- Tax Rate: How the levy amount is divided among all properties in the District.
A higher levy, combined with changing property values, can result in higher taxes for individual property owners.
Is the district managing its finances responsibly?
Yes, but when expenses increase faster than revenue, finances are difficult to manage.
What are state revenue limits?
Since 1993, the State of Wisconsin has capped the amount of funding each school district can receive and spend per student. These limits were based on what districts were spending at that time.
How has inflation affected school funding?
Since 2009, state funding has no longer been tied to inflation, meaning revenue has not automatically increased as costs rose. Inflation has steadily widened the gap between what schools receive and what it actually costs to educate students. As a result, essential expenses like salaries, health care, transportation, and utilities have risen faster than our funding. The past three years of high inflation have caused expenses to far outpace revenue growth.
How has inflation impacted the District’s finances?
Inflation is far outpacing our allowed revenue increases:
- 2024-2025: 0.56% revenue increase; 2.9% inflation → $159,972 deficit
- 2025-2026: 0.55% revenue increase; 2.7% inflation → $250,566 deficit
- 2026-2027*: 0.10% revenue increase; 3% inflation → $672,158 deficit - assuming we pass the recurring referendum and not making any cuts
*Estimated
Can’t the District just cut costs further?
We’ve already reduced expenses in facilities, staffing, and operations. However, many costs are legally required, including:
- Transportation and school meals
- State-mandated testing and curriculum changes
- Services for students with disabilities
- Support for English learners
Because the state does not fully fund these requirements, districts must cover the remaining costs locally. Additional large cuts would directly affect student learning and opportunities.
What happens if these funding challenges continue?
Without additional revenue or voter-approved funding through a referendum, the District will face increasingly difficult decisions that could affect staffing levels, class sizes, and program offerings. Maintaining high-quality education for all students will require long-term community solutions.
Does going to a referendum mean that a district is poorly managing its finances?
No. Referenda are often the only remaining tool districts have to address gaps created when state funding does not keep pace with inflation. When schools are only allowed to spend increases that fall below the amount necessary to keep pace with inflation, they must either cut programs and services for students or seek referendum approval. Oftentimes, they resort to both.
What major costs are increasing for schools?
Several core expenses continue to rise faster than funding:
- Education Costs: Offering comprehensive programs—from 4K to Advanced Placement and technical education—requires growing investment each year.
- Special Education: The state reimburses only about 25–30% of special education costs, far below the 67% once promised. Over the last four years, WSD has used more than $3.82 million from its general fund to cover the rest.
- Healthcare: Health insurance costs have been increasing annually and we're looking at renewals around 10% or more. This is occurring even though the District has made insurance changes to control costs.
- Salaries: With statewide educator shortages and a competitive job market, attracting and retaining qualified teachers and support staff is more costly than ever.
What steps has the Waterloo School District taken to reduce costs?
The District continues to make difficult choices to operate more efficiently while maintaining student programs. Cost-saving measures include:
- Reducing staffing costs by not filling some open positions
- Managing healthcare expenses by going out to bid and negotiating our contract
- Sending out RFP's when our contracts come up for renewal.
Where can I find more information on the Waterloo School District's finances?
The District's recent Annual Budgets and Annual Financial Reports are available on our website.